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3 2 points Use the following information for questions 3.4 and 5 Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The

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3 2 points Use the following information for questions 3.4 and 5 Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products for exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor hours. Information concoming three of Portsmouth's products appears below Recliner 51.228 3700 Sofa $2,065 31.350 Love Seat $1.450 $1,050 Selling price per unit Variable cost per unit Upholstery labor houts per unt 8 hours 13 hours 5 hours Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries to work overtime. As aming that this extra time would be used to produce sofas, up to how much of an overtimente per hour should the company be willing to pay to keep the upholstery shop open after sommal working hours? Type your answer 4 2 points A small nearby upholstering company has offered to upholster furniture for Portsmouth at a pnce of 549 per hour. The management of Portsmouth is confident that this upholsterung company's work is high quality and their craftsmen can work as quickly as Portsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth earn if it hires the Douby upholstering company to make Love Seats? Type your answer 5 1 point Should Portsmouth hire the nearby upholstering company? 0 Yes

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